RADCOM Receives Credit Facility

RADCOM Receives Credit Facility
PR Newswire
TEL AVIV, Israel, October 19, 2012
TEL AVIV, Israel, October 19, 2012 /PRNewswire/ --
RADCOM Ltd. (NASDAQ: RDCM), a leading service assurance provider, today
announced that it has received a credit facility from the First International
Bank of Israel in an amount of US$ 1.5 million. The facility has an initial 6
month term, and may be renewed for additional periods based on compliance with
certain covenants. The facility carries interest rates varying between Libor +
3.25%-4% for USD denominated advances and Prime + 1-2% for NIS denominated
advances, and is secured by a floating charge on all of Radcom's assets.
The company will use the proceeds of the facility mainly in order to finance
its ongoing operations and working capital needs.
"Due to the current high working capital needs of our business associated with
our sales mix shift to multi-million dollar Tier-1 deals, this credit facility
is an efficient way for RADCOM to access cash, from time to time, as we work
through our strong backlog," said Gilad Yehudai, CFO of RADCOM. "We look
forward to a fruitful long-term partnership with the First International Bank
of Israel."
About RADCOM
RADCOM develops, manufactures, markets and supports innovative network test
and service monitoring solutions for communications service providers and
equipment vendors. The Company specializes in next-generation Cellular as well
as IMS, Voice, Data and VoIP networks. Its solutions are used in the
development and installation of network equipment and in the maintenance of
operational networks. The Company's products facilitate fault management,
network service performance monitoring and analysis, troubleshooting and
pre-mediation. RADCOM's shares are listed on the NASDAQ Capital Market under
the symbol RDCM. For more information, please visit http://www.RADCOM.com.
Risks Regarding Forward-Looking Statements
Certain statements made herein that use the words "estimate," "project,"
"intend," "expect," "believe" and similar expressions are intended to identify
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve known
and unknown risks and uncertainties that could cause the actual results,
performance or achievements of RADCOM to be materially different from those
that may be expressed or implied by such statements, including, among others,
changes in general economic and business conditions and specifically, decline
in the demand for RADCOM's products, inability to timely develop and introduce
new technologies, products and applications, and loss of market share and
pressure on prices resulting from competition. For additional information
regarding these and other risks and uncertainties associated with RADCOM's
business, reference is made to RADCOM's reports filed from time to time with
the United States Securities and Exchange Commission. RADCOM does not
undertake to revise or update any forward-looking statements for any reason.
Contact:
Gilad Yehudai
CFO
+972-77-774-5060
gilady@radcom.com
SOURCE RADCOM Ltd